Letter to chase payment from debtor?

Timmne
Timmne Registered Posts: 37 ? ? ?
Hi all,

I saw a while back that someone on here used a company to send official looking chase letters to debtors, for a couple of quid per letter. I've searched everywhere but can't find the thread for love nor money!

Could anyone help me out with the link to this company please?

Thanks

Comments

  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Timmne wrote: »
    Hi all,

    I saw a while back that someone on here used a company to send official looking chase letters to debtors, for a couple of quid per letter. I've searched everywhere but can't find the thread for love nor money!

    Could anyone help me out with the link to this company please?

    Thanks

    its Thomas Higgins

    Depending on the scale of the debt though and timescale a solicitors letter really might not be what you want, basic credit control should be the first thing to try.

    always phone!! It gets better results than a pink letter then a yellow letter then a red letter....
  • Marga
    Marga Registered Posts: 981
    Monsoon wrote: »
    its Thomas Higgins

    Depending on the scale of the debt though and timescale a solicitors letter really might not be what you want, basic credit control should be the first thing to try.

    always phone!! It gets better results than a pink letter then a yellow letter then a red letter....

    phone or email shows personally involved to resolve the issue and shows that you are willing to help

    letters sound a bit impersonal and basically just asking for money

    As Monsoon said credit control should be the first step: when you know an invoice is due , two weeks before is due give them a call and ask if there are any possible reasons why the invoice wont be paid on time if there are none and the due date comes and invoice is not paid then call and said why the delay there might be things holding the payment like GRN's or receipts

    If after two weeks of overdue payment you have heard nothing then involve/escalate to the team leader or check with the person who raised the invoice/order

    Sorry i just went on the process lol you can tell i have been doing my homework
  • Timmne
    Timmne Registered Posts: 37 ? ? ?
    Thanks both.

    This isn't trying to get money out of John Smith who's taken a week more than he should, it's about getting much more money out of massive UK corporations - I need a formal process in place before I take the customers to court. A couple of quid to have a different name on the letter is invaluable IMO!

    I have a credit control department working on these things already but unfortunately it's a case of a credit control clerk trying to get money out of a purchase ledger clerk and the result is always "computer says no".

    Thanks again!
  • Rinske
    Rinske Registered Posts: 2,453
    Timmne wrote: »
    Thanks both.

    This isn't trying to get money out of John Smith who's taken a week more than he should, it's about getting much more money out of massive UK corporations - I need a formal process in place before I take the customers to court. A couple of quid to have a different name on the letter is invaluable IMO!

    I have a credit control department working on these things already but unfortunately it's a case of a credit control clerk trying to get money out of a purchase ledger clerk and the result is always "computer says no".

    Thanks again!
    Has your credit controller tried speaking to the person who is supposed to have authorised the original purchase? Or to the manager of the department the goods are for?

    Sorry, I work on purchase ledger and we got a manager that only wants to sign invoices once every so often, while his department just continues to order. When he just started he only wanted to sign invoices once a month or so. He did start to sign more often quite soon, after we started to give his phone number out.

    We only did it, because he didn't want to understand the concept of paying in time and being chased. Nowadays we tend to pay in time and if not, there is a usually a specific reason for it.
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    A Letter Before Action from Thomas Higgins has worked every time for me and at a cost of £2 you can't go wrong.

    Note of caution: I only use it on clients I have no intention of doing work for again. Repeat customers may very well take offence!
  • Jon_1984
    Jon_1984 Registered Posts: 186 ? ? ?
    Many in my industry use Geoffrey Parker Borne. They also offer basic letters for a couple of quid and the letters are professional, to the point and non offensive.

    I personally often find a headed letter typed in red and sent first class often bears fruit for the price of a stamp.

    [red]
    xyz (head of finance if possible)
    any company
    123 anywhere
    anytown
    abc 123

    xx/xx/2010

    Re: Account

    7 days notice of intended legal action"

    Dear xyz

    Please note that if sum of £lots owed to abc is not paid by the xx/xx/2010 we will have no alternative than to refer the debt to our debt management agency 123. This will incur additional charges and/or interest in line with the Late Payments Act.

    No further notice of our intention to refer this debt will be given.

    Yours Faithfully



    Credit control

    Date of intended legal action: xx/xx/2010
    [/red]

    You should not send this letter unless you are prepared to follow through if they dont pay though. In my experience the customers tend to know they are in the wrong and will often return for more business (paid in advance of course...)
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    help4u wrote: »
    I haven't used Thomas Higgins but assume that after the £2 letter one has to use the next two stages with them.

    Nope.
  • stuart-elmes
    stuart-elmes Registered Posts: 6
    Why not try a commercial debt recovery service? Since you have a statutory right to add interest and recovery costs to the debt, the debtor ends up paying the success fee. It's less aggressive than jumping straight to a letter before action, but it carries the same threat that the situation has become serious and the collection agency has the wherewithal to take it all the way to claims court.

    Have a look at CreditXS from My Credit Controllers -

    http://www.mycreditcontrollers.co.uk/overdue_invoice_business_debt_collection_service_CreditXS.html
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